YASHWANT SINGH Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) The Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated November 9, 1985, in respect of the assessment year 1980-81 under Section 256(1) of the Act :

(2.) The brief facts of the case are that the assessee has shown withdrawals of Rs. 11,439 on account of household expenses. The Income-tax Officer was not satisfied with this low figures of withdrawals and an addition on that account was made. The Income-tax Appellate Tribunal maintained the expenses at the figure of Rs. 25,800. In the assessment order, the Income-tax Officer referred to the enquiry report of the inspector which was duly signed by the assessee. The two sons of the assessee were studying in St. Anthony School, the assessee admitted a sum of Rs. 720 in respect of school fee and Rs. 780 in respect of tuition fee, and the tutors were paid Rs. 200 to Rs. 300 per month per child during examination days. On that basis, an expenditure of Rs. 3,600 was estimated. The messing expenses were explained by the assessee for Rs. 6,000 only which were estimated at Rs. 300 per person per month. The miscellaneous expenses were admitted at Rs. 60 per month for maid servant and mali. The expenses for washerman were not included and such expenses were included at Rs. 60 per month. The milk expenses for maintaining the cow at the residence at Rs. 200 per month were estimated. The water and electricity expenses were explained to have been met by the mother of the assessee but she was having the withdrawal of Rs. 2,050 for the whole year, and therefore, such expenses were estimated at Rs. 200 per month, keeping in view the fact that refrigerator, air-cooler and other electrical installations are available with the assessee. The Lions' Club membership was admitted at Rs. 500 per annum. The expenses for cloth and daily items were admitted at a figure of Rs. 2,500 but the Income-tax Officer estimated the expenses at a figure of Rs. 200 per month per member for cloth, cosmetics, soap, oil and other luxury items. As a result of this an addition of Rs. 35,261 was made, treating it as income from undisclosed sources.

(3.) In the appeal before the Appellate Assistant Commissioner, an addition to the extent of Rs. 24,741 was maintained. The matter was further challenged by the assessee before the Income-tax Appellate Tribunal, where the addition of Rs. 14,061 was maintained by the Tribunal.